Amazon.com, Inc (AMZN  ) was trading flat on Wednesday, in tandem with the S&P 500, as traders and investors await the release of the Federal Reserve's July meeting minutes, which are set to print at 2 p.m. ET.

The e-commerce and streaming giant has been trading in a downtrend since reaching an almost 52-week high of $143.63 on Aug. 4 -the day after printing a quarterly earnings beat.

The stock has been pulled lower by the general market, which has been trending lower, causing volatility in the stock market to periodically spike.

Once the minutes are issued, volatility in the stock market is likely to increase, especially if the reaction to the news is negative, which could drag Amazon down due to how heavily the stock is weighted in the S&P 500.

Traders wishing to play the potential volatility in the stock market can use MIAX's SPIKES Volatility products. The products, which are traded on SPIKES Volatility Index (SPIKE  ), track expected volatility in the SPY over the next 30 days.

The Amazon Chart: Amazon's downtrend has been taking place within a falling channel pattern on the daily chart, which is bearish for the short term but can be bullish down the road. On Wednesday, the stock tested the lower descending trend line of the pattern as support and bounced slightly up from the area, indicating the pattern is being recognized.

  • If Amazon closes the trading day above the 136.50 mark, the stock will form a hammer candlestick, which could indicate the next lower low within the downtrend has occurred and Amazon will bounce on Thursday. If Amazon closes near the low-of-day or drops through the bottom of the channel, the formation will be negated and a steeper downtrend could be in the cards.
  • Amazon has a gap below that exists between $129.84 and $135.85. Gaps on charts fill about 90% of the time, which suggests Amazon will fill the empty trading range in the future. When Amazon drops into the gap, the stock is likely to find at least temporary support at the bottom of the empty range.
  • If the stock receives a positive reaction to the Fed's minutes and breaks up from the channel, bullish traders will want to see the stock form a new 52-week high, which could indicate a longer-term rebound is on the horizon.
  • Amazon has resistance above at $136.83 and at $142.18 and support below at $131 and at $129.33.